Financial Markets Authority (FMA)

Basic Information

The Financial Markets Authority (FMA) is New Zealand’s primary financial regulatory body overseeing securities, financial reporting, derivatives, and forex markets. Established in 2011 under the Financial Markets Authority Act 2011, it operates as a Crown Entity with statutory independence. The FMA ensures market integrity, investor protection, and compliance with financial laws. Its headquarters is located in Auckland, New Zealand.

Historical Background

The FMA was formed in response to the 2008 global financial crisis and the failure of New Zealand’s previous regulator, the Securities Commission, to adequately protect investors. Officially commencing operations in 2014 under the Financial Markets Conduct Act 2013 (FMC Act), it consolidated regulatory responsibilities across multiple financial sectors. The FMA replaced fragmented oversight structures with a unified approach to enhance market transparency and consumer trust.

Legal Authority & Regulatory Framework

The FMA derives its authority from:

• Financial Markets Conduct Act 2013 (FMC Act): Governs financial product offerings, disclosure requirements, and market conduct rules.
• Financial Service Providers Act 2008: Mandates registration for all financial service providers (FSPs).
• Anti-Money Laundering/Countering Financing of Terrorism Act 2009: Enforces AML/CFT compliance.
• Derivatives Issuer License: Required for forex brokers offering leveraged trading under Section 389 of the FMC Act.

Key Responsibilities & Scope

The FMA oversees:

• Market Participants: Licensed derivatives issuers (forex/CFD brokers), fund managers, financial advisers, auditors, and crowdfunding platforms.
• Product Supervision: Managed investment schemes, KiwiSaver, superannuation, and securities offerings.
• Compliance Enforcement: Licensing reviews, financial audits, and disciplinary actions including fines up to NZ$5 million or license revocation for misconduct.
• Investor Protection: Resolving complaints against regulated entities and combating fraudulent schemes.

Contact Information

Address:
Financial Markets Authority
Level 5, 100 Willis Street
Wellington 6011, New Zealand

General Inquiries:
Phone: +64 4 472 9830
Email: [email protected]

Complaints:
Online Portal: https://fma.govt.nz/contact/make-a-complaint/
Investor Helpline: 0800 434 567 (NZ toll-free)

Regulatory Status Verification

To confirm a firm’s FMA authorization:

1. Visit the official Licensed Providers Register at https://fma.govt.nz/compliance/licensed-providers/
2. Search by entity name or FSP number (Financial Service Provider registration)
3. Validate “Derivatives Issuer” status under “Financial Services” section
4. Cross-check with FSPR database at http://www.fspr.govt.nz/ for registration details

Note: Mere FSP registration doesn’t imply regulatory oversight. Only entities with explicit “Derivatives Issuer” authorization may legally offer forex trading.